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Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.1
9.1
Chapter 9
People, jobs and organization
Photodisc. Steve Cole
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.2
9.2
Design
Planning and control
Operations strategy
Improvement
Layout and flow
Process design
Supply network design
Layout and flow
Process technology
People, jobs and
organization
Product/service design
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.3
9.3
In Chapter 9 – People, jobs and organization – Slack et al. identify the following key questions:
•Why are people issues so important in operations
management?
•How do operations managers contribute to human
resource strategy?
•What forms can organization designs take?
•How do we go about designing jobs?
•How are work times allocated?
Key operations questions
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.4
9.4
The elements of job design
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.5
9.5
Operations in practice – W. L. Gore
•How does W.L. Gore’s approach to managing its human resources seem to differ from more conventional companies?
•What do you think are the advantages and disadvantages of W.L. Gore’s approach?
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.6
9.6
Understand organization
design
People on operations
Contribute to human resource
strategy
People, jobs and
organization
Design individuals’ and groups’ jobs
Design the working
environment
Allocate work times
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.7
9.7
The operation
Alignment with business strategy (Strategic partner)
Assisting in resolving operating issues (Employee
champion)
Managing transformation and change (Change
agent)
HR processes and procedures (Administrative expert)
Recruit Develop Deploy
Human resource strategy
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.8
9.8
Human resources (HR) role
What it involves Relevance to operations management (OM)
Strategic partner
Aligning HR and business strategy: ‘organizational diagnosis’, manpower planning, environmental monitoring, etc.
OM integrates Operations and HR strategy. OM specifies skills requirements and relies on HR to develop them informed by labour market forecasts, succession planning, etc.
Administ- rative expert
Running the organization’s HR processes and ‘shared services’: payroll, appraisal, selection and recruitment, communication, etc.
OM is largely an ‘internal customer’ for HR’s processes. OM must be clear in its requirements with agreed service levels mutually negotiated.
Employee champion
Listening and responding to employees: ‘providing resources to employees’, conciliation, career advice, grievance procedures, etc.
OM and HR must develop a good working relationship and clear procedures to deal with any ‘emergency’ issues that arise. Also OM must be sensitive to feedback from HR on how it manages day-to-day operations.
Change agent
Managing transformation and change: ‘ensuring capacity for change’, management development, performance appraisal, organization development, etc.
OM and HR are jointly responsible for operations improvement activities. HR has a vital role in all the cultural, developmental, and evaluation activities associated with improvement.
Human resource strategy (Continued)
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.9
9.9
Is it ‘googley’?
How did Google’s approach to recruitment reflect it’s human resources strategy?
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.10
9.10
Causes of stress at work and what could be doneCauses of stress What can be done about it
Staff can become overloaded if they cannot cope with the amount of work or type of work they are asked to do
Change the way the job is designed, training needs and whether it is possible for employees to work more flexible hours
Staff can feel disaffected and perform poorly if they have no control or say over how and when they do their work
Actively involve staff in decision making, the contribution made by teams, and how reviewing performance can help identify strengths and weaknesses
Staff feel unsupported: levels of sick absence often rise if employees feel they cannot talk to managers about issues that are troubling them
Give staff the opportunity to talk about the issues causing stress, be sympathetic and keep them informed
A failure to build relationships based on good behaviour and trust can lead to problems related to discipline, grievances and bullying
Check the organization's policies for handling grievances, unsatisfactory performance, poor attendance and misconduct, and for tackling bullying and harassment
Staff will feel anxious about their work and the organization if they don't know their role and what is expected of them
Review the induction process, work out an accurate job description and maintain a close link between individual targets and organizational goals
Change can lead to huge uncertainty and insecurity
Plan ahead so change is not unexpected. Consult with employees so they have a real input, and work together to solve problems
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.11
9.11 U-form organizations give prominence to functional groupingsof resources
Group headquarters
Marketing Operations Finance
Dept.A Dept.CDept.B
Dept.A Dept.CDept.B
Dept.A Dept.CDept.B
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.12
9.12 The M form separates the organization’s resources intoseparate divisions
Division A Division B Division C
Group headquarters
Marketing etc.Operations
Marketing etc.Operations
Marketing etc.Operations
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.13
9.13
Group headquarters
Matrix form structures the organization’s resources so that they have two (or more) levels of responsibility
Division A
Division B
Division C
Marketing
Operations
Human resources
Finance
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.14
9.14
Organization A headquarters
N form organizations form loose networks internally and externally
Group A Group F
Group D
Group E
Group C
Group B
Org D
Org E
Org B
Org C
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.15
9.15
Design individuals’ and groups’ jobs
Design the working
environment
Allocate work times
Ergonomics‘Scientific’ management
‘Behavioural’ approaches
Flexible working
Division of labour
Team working
The main influences on job design, work time allocation and the design of the working environment
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.16
9.16
The objectives of job design
Jobdesign impacts on
quality of working life
quality
speed
dependability
flexibility
cost
health and safety
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.17
9.17
Dividing the total task down into smaller parts, each of which is accomplished by a single person or team.
Promotes faster learning.
Makes automation easier.
Ensures that non-productive work is reduced.
Advantages
Leads to monotony.
Can result in physical injury.
Is not particularly robust.
Can reduce flexibility.
Disadvantages
Division of labour
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.18
9.18
Work study
Method study Work measurement
Method study is the systematic recording and critical examination of existing and proposed methods
of doing work, as a means of developing and applying easier and more effective methods and
reducing costs.
The application of techniques designed to establish the time for a qualified worker to carry
out a specified job at a defined level of performance.
Work study
A generic term for those techniques, particularly method study and work measurement, which are used in the examination of human work in all its
contexts, and which lead systematically to the investigation of all the factors which affect the efficiency and economy of the situations being reviewed in
order to effect improvement.
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.19
9.19
Standard performance is the rate
of output which qualified workers will
achieve without over-exertion as an
average over the working day provided
they are motivated to apply themselves
to their work.
Standard performance
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.20
9.20
A qualified worker is one who is
accepted as having the necessary
physical attributes, intelligence, skill,
education and knowledge to perform the
task to satisfactory standards of safety,
quality and quantity.
Qualified worker
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.21
9.21
Process charting
DDDDDDDDDDD
Activity Operation
Movement
Delay Inspection
Storage
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.22
9.22
Flow process charts for processing expense reports
Send to accounts receivable
Reports to batch control
Reports filed
Confirm payment
Report arrives
Stamp and date report
Send cash to receipt desk
Wait for processing
Check expenses report
Wait for processing
Check employee record
Check advance payment
Send to account payable
Wait for processing
Attach payment voucher
Collect retorts into batch
Check against rules
Wait for processing
Batch control number
Check payment voucher
Log report
Batch to audit desk
Wait for batching
Batch of reports logged
Copy of reports to filing
Description of activity
Totals
8
1
2
4
5
6
7
9
10
3
18
11
12
14
15
16
17
19
20
13
26
2223
24
25
21
7 8 5 5 1
Payment voucher to keying
Before
Reports to batch control
Reports filed Payment voucher to keying
Confirm payment
Report arrives
Stamp and date report
Check expenses report
Wait for processingCheck reports and vouchers
Attach payment voucher
Collect retorts into batch
Batch control number
Batch to audit desk
Wait for batching
Copy of reports to filing
Description of activity
Totals
8
1
2
4
5
6
7
9
10
3
11
12
14
15
13
5 5 2 2 1
After
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.23
9.23
Resources and flow: job design
Method study: SREDIM
Method study seeks to improve methods of production –it embraces layout, environment, material and labour and usage.
Select task to be studied
Record present method – using 5 charting symbols
Examine the facts critically
Develop best method
Install the new method
Maintain by regular checks.
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.24
9.24
Work measurement
Standard times are the building blocks of process
design – they represent the time needed for a qualified
worker to carry out specific jobs at defined levels of
performance.
Basic time + allowances = standard time
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.25
9.25
Rating scales
British standard I.L.O.
American standard
Standard performance
‘Incentive’
‘Normal’
100 80
60 75
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.26
9.26
The stages in work measurement
Basic time for element
Observed time for element
Basictime
Observedtime
RatingStandard rating
= X
‘Rating’ to adjust for effort
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.27
9.27
The stages in work measurement (Continued)
Basictime
Standard time = Allowances+
Basic time for element
‘Allowances’ for relaxation, etc.Standard time for element
Standard time for job
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.28
9.28
Element Basic time Allowancesmins
Standard time
A
B
C
D
0.6
0.4
0.8
0.3
2.1
17
12
10
17
0.10
0.05
0.08
0.05
0.28
0.70
0.45
0.88
0.35
2.38
Basic time2.10
Allowance0.28
Standard time = 2.38
Build up of standard times
%
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.29
9.29
A standard unit of work, e.g. 1 standard minute
The ‘standard’ unit of work
Light job90% work10% relaxation
Average job84% work16% relaxation
Heavy job68% work32% relaxation
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.30
9.30
Ergonomics
How the person interfaces with the physical aspects of
his or her workplace.
How the person interfaces with the
environmental conditions prevalent in his or her
immediate working area.
Ergonomics is concerned primarily with the physiological aspects of job design – i.e., with the human body and how it
fits into its surroundings.
Ergonomics
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.31
9.31
Using anthropometric data, ergonomics can guide how people interface with their workplace.
Ergonomics (Continued)
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.32
9.32
Forearmsapproximately
horizontal
Seat backadjustability
Good lumbarsupport
Seat heightadjustability
No excess pressure on underside of thighs and backs of knees
Foot support
if neededSpace for
postural change,no obstaclesunder desk
Leg room andclearance to allowpostural changes
Ergonomics (Continued)
Ergonomics in the office environment
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.33
9.33
Ergonomics in the office environment
Keyboard usable,
adjustable,detachable,
legible
Adequate lighting
Distracting noise
minimizedSoftware appropriate to
task, adapted to user, no undisclosed monitoring
Screen: stable image,
adjustable, readable
glare/reflection free
Windowcovering
Adequate contrast,
no glare or distractingreflections
Work surfaces: allow flexible
arrangements, spacious, glare free
Ergonomics (Continued)
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.34
9.34
Ergonomics – How the person interfaces with the environmental conditions prevalent in his or her immediate
working area.
For example, people working in extreme conditions.
Ergonomics (Continued)
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.35
9.35
Forming natural
Combining tasks
work units
Establishing client relationships
Vertical loading
Opening feedback channels
Low absenteeism and turnover
High satisfaction with the work
High internal work motivation
High quality work performance
Techniques of job design
Core job characteristics
Mental states
Performance and personal
outcomes
Skill variety
Task identity
Task significance
Autonomy
Feedback
Experienced meaningfulness of the work
Experienced responsibility for outcomes of the work
Knowledge of the actual results of the work activity
Behavioural approaches – Hackman and Oldham’smodel of job design
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.36
9.36
More tasks which give increased
responsibility autonomy or
decision-making Original
job tasks
Job enlargement
Job enrichment
More tasks of the same type
Behavioural approaches – Job enlargement and enrichment
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.37
9.37
Team working – where staff, often with overlapping skills, collectively perform a defined task and have a high degree of
discretion over how they actually perform the task.
For example – a team of nurses sharing the responsibility to care for patients
Team working
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.38
9.38
Empowerment means more than autonomy. It means giving staff the ability to change how they do their jobs and the authority to make changes to the job itself, as well as how it is performed.
Empowerment
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.39
9.39
Empowerment – McDonald’s lets families share jobs. It allows family members to cover each others jobs. Members of the same family working in the same outlet are able to work each others shifts without giving any prior notice or getting a manager’s permission.
Empowerment (Continued)
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.40
9.40
Flexible working – Increasingly some people are expected to do their jobs while traveling, with only occasional visits to their ‘home’ location.
Flexible working
Slack, Chambers and Johnston, Operations Management, 6th Edition,© Nigel Slack, Stuart Chambers, and Robert Johnston 20109.41
9.41
Division of labour
Ergonomics
Behavioural approaches
Empowerment
Team working
Flexible workingStaff treated
as a resource
Staff treated as a cost
Emphasis on managerial control
Emphasis on commitment and
engagement of staff
Scientific management
Self-managed method study
Control versus commitment